Lantheus Holdings, Inc. Reports Fourth Quarter and Full Year 2019 Financial Results

February 25, 2020 at 7:00 AM EST
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  • Worldwide revenue of $89.3 million and $347.3 million for the fourth quarter and full year 2019, representing an increase of 3.6% and 1.2% over the prior year period, respectively
  • Net income of $10.5 million and $31.7 million for the fourth quarter and full year 2019, representing a decrease of 21.4% and 21.8% from the prior year period, respectively
  • GAAP fully diluted EPS of $0.26 and $0.79 for the fourth quarter and full year 2019, representing a decrease of 22.6% and 23.0% from the prior year period; adjusted fully diluted EPS of $0.34 and $1.17 for the fourth quarter and full year 2019, representing an increase of 19.0% and 3.5% over the prior year period, respectively
  • Net cash provided by operating activities was $22.4 million and $80.4 million for the fourth quarter and full year 2019. Free cash flow of $17.7 million and $58.3 million for the fourth quarter and full year 2019, representing an increase of 77.9% and 42.0% over the prior year period, respectively
  • The Company provides first quarter and full year 2020 revenue and adjusted fully diluted earnings per share guidance

NORTH BILLERICA, Mass.--(BUSINESS WIRE)--Feb. 25, 2020-- Lantheus Holdings, Inc. (the “Company”) (NASDAQ: LNTH), parent company of Lantheus Medical Imaging, Inc. (“LMI”), a global leader in the development, manufacture and commercialization of innovative diagnostic imaging agents and products, today reported financial results for its fourth quarter and full year 2019 ended December 31, 2019.

The Company’s worldwide revenue for the fourth quarter of 2019 totaled $89.3 million, compared with $86.3 million for the fourth quarter of 2018, representing an increase of 3.6% over the prior year period. Full year 2019 worldwide revenues were $347.3 million, compared with $343.4 million for the full year 2018, representing an increase of 1.2% over the prior year period.

The Company’s fourth quarter 2019 net income was $10.5 million, or $0.26 per fully diluted share, as compared to $13.3 million, or $0.34 per fully diluted share for the fourth quarter of 2018, representing a decrease of 21.4% from the prior year period. Full year 2019 net income was $31.7 million, or $0.79 per fully diluted share, as compared to $40.5 million, or $1.03 per fully diluted share for the full year 2018, representing a decrease of 21.8% from the prior year period.

The Company’s fourth quarter 2019 adjusted fully diluted earnings per share were $0.34, as compared to $0.29 for the fourth quarter of 2018, representing an increase of 19.0% over the prior year period. The Company’s full year 2019 adjusted fully diluted earnings per share were $1.17, as compared to $1.13 for the full year 2018, representing an increase of 3.5% over the prior year period.

Lastly, net cash provided by operating activities was $22.4 million and $80.4 million for the fourth quarter and full year 2019. Free Cash Flow was $17.7 million for the fourth quarter of 2019, representing an increase of approximately $7.7 million, or 77.9% over the prior year period. Full year 2019 free cash flow was $58.3 million, as compared to $41.1 million for the full year 2018, representing an increase of approximately $17.3 million, or 42.0% over the prior year period.

“We finished 2019 with robust DEFINITY, earnings and free cash flow performance,” said Mary Anne Heino, President and CEO. “Throughout 2019, it was Lantheus team members from across the organization who drove these results. As we look to 2020 and beyond, we see exciting revenue and value creation opportunities for the Company as we add the Progenics’ team with their exciting oncology, precision diagnostic, and other products to our own portfolio.”

Outlook

The Company guidance for the first quarter and full year 2020 is as follows:

 

 

Guidance Issued February 25, 2020

Q1 FY 2020 Revenue Growth

 

2.9% - 5.2%

Q1 FY 2020 Revenue

 

$89 million - $91 million

Q1 FY 2020 Adjusted Fully Diluted EPS

 

$0.25 - $0.27

 

 

Guidance Issued February 25, 2020

FY 2020 Revenue Growth

 

10.6% - 12.3%

FY 2020 Revenue

 

$384 million - $390 million

FY 2020 Adjusted Fully Diluted EPS

 

$1.34 - $1.40

On a forward-looking basis, the Company does not provide GAAP income per common share guidance or a reconciliation of adjusted fully diluted EPS to GAAP income per common share because the Company is unable to predict with reasonable certainty business development and acquisition-related expenses, purchase accounting fair value adjustments, and any one-time, non-recurring charges. These items are uncertain, depend on various factors, and could be material to results computed in accordance with GAAP. As a result, it is the Company’s view that a quantitative reconciliation of adjusted fully diluted EPS on a forward-looking basis is not available without unreasonable effort.

Internet Posting of Information

The Company routinely posts information that may be important to investors in the “Investors” section of its website at www.lantheus.com. The Company encourages investors and potential investors to consult its website regularly for important information about the Company.

Conference Call and Webcast

As previously announced, the Company will host a conference call on Tuesday, February 25, 2020 at 8:00 a.m. ET. To access the live conference call via telephone, please dial 1-866-498-8390 (U.S. callers) or 1-678-509-7599 (international callers) and provide passcode 7953035. A live audio webcast of the call also will be available in the Investors section of the Company’s website at www.lantheus.com.

A replay of the audio webcast will be available in the Investors section of our website at www.lantheus.com approximately two hours after completion of the call and will be archived for 30 days.

The conference call will include a discussion of non-GAAP financial measures. Reference is made to the most directly comparable GAAP financial measures, the reconciliation of the differences between the two financial measures, and the other information included in this press release, our Form 8-K filed with the SEC today, or otherwise available in the Investor Relations section of our website located at www.lantheus.com.

The conference call may include forward-looking statements. See the cautionary information about forward-looking statements in the safe-harbor section of this press release.

About Lantheus Holdings, Inc. and Lantheus Medical Imaging, Inc.

Lantheus Holdings, Inc. is the parent company of LMI, a global leader in the development, manufacture and commercialization of innovative diagnostic imaging agents and products. LMI provides a broad portfolio of products, including the echocardiography contrast agent DEFINITY® Vial for (Perflutren Lipid Microsphere) Injectable Suspension and TechneLite® (Technetium Tc99m Generator), a technetium-based generator that provides the essential medical isotope used in nuclear medicine procedures. The Company is headquartered in North Billerica, Massachusetts with offices in Puerto Rico and Canada. For more information, visit www.lantheus.com.

Non-GAAP Financial Measures

The Company uses non-GAAP financial measures, such as adjusted net income and its line components; adjusted net income per share - fully diluted; and free cash flow. The Company’s management believes that the presentation of these measures provides useful information to investors. These measures may assist investors in evaluating the Company’s operations, period over period. However, these measures may exclude items that may be highly variable, difficult to predict and of a size that could have a substantial impact on the Company’s reported results of operations for a particular period. Management uses these and other non-GAAP measures internally for evaluation of the performance of the business, including the allocation of resources and the evaluation of results relative to employee performance compensation targets. Investors should consider these non-GAAP measures only as a supplement to, not as a substitute for or as superior to, measures of financial performance prepared in accordance with GAAP.

This press release includes forward-looking non-GAAP guidance for 2020 adjusted fully diluted EPS. No reconciliation of this forward-looking non-GAAP guidance is included in this press release because, due to the high variability and difficulty in making accurate forecasts and projections of some of the information that would be required to prepare such a reconciliation and the fact that some of the excluded information is not readily ascertainable or accessible, the Company is unable to quantify certain amounts that would be required to be included in the most directly comparable GAAP financial measure without unreasonable efforts.

Safe Harbor for Forward-Looking and Cautionary Statements

This press release contains “forward-looking statements” as defined under U.S. federal securities laws, including statements about our 2020 outlook. Forward-looking statements may be identified by their use of terms such as anticipate, believe, confident, could, estimate, expect, intend, may, plan, predict, project, target, will and other similar terms. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to materially differ from those described in the forward-looking statements. Readers are cautioned not to place undue reliance on the forward-looking statements contained herein, which speak only as of the date hereof. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law. Risks and uncertainties that could cause our actual results to materially differ from those described in the forward-looking statements include our future operating results, our ability to complete our acquisition of Progenics Pharmaceuticals and realize the expected benefits on the anticipated timeline or at all, the outcome of our clinical programs, as well as the risk and uncertainties discussed in our filings with the Securities and Exchange Commission (including those described in the Risk Factors section in our Annual Reports on Form 10-K and our Quarterly Reports on Form 10-Q).

Lantheus Holdings, Inc.

Consolidated Statements of Operations

(in thousands, except per share data – unaudited)

 

 

 

Three Months Ended
December 31,

 

Year Ended
December 31,

 

 

2019

 

2018

 

2019

 

2018

Revenues

 

$

89,346

 

 

$

86,271

 

 

$

347,337

 

 

$

343,374

 

Cost of goods sold

 

44,781

 

 

42,426

 

 

172,526

 

 

168,489

 

Gross profit

 

44,565

 

 

43,845

 

 

174,811

 

 

174,885

 

Operating expenses

 

 

 

 

 

 

 

 

Sales and marketing

 

10,392

 

 

9,911

 

 

41,888

 

 

43,159

 

General and administrative

 

17,301

 

 

12,440

 

 

61,244

 

 

50,167

 

Research and development

 

4,434

 

 

4,551

 

 

20,018

 

 

17,071

 

Total operating expenses

 

32,127

 

 

26,902

 

 

123,150

 

 

110,397

 

Operating income

 

12,438

 

 

16,943

 

 

51,661

 

 

64,488

 

Interest expense

 

2,126

 

 

4,611

 

 

13,617

 

 

17,405

 

Loss on extinguishment of debt

 

—

 

 

—

 

 

3,196

 

 

—

 

Other expense (income)

 

7,916

 

 

(410

)

 

6,221

 

 

(2,465

)

Income before income taxes

 

2,396

 

 

12,742

 

 

28,627

 

 

49,548

 

Income tax (benefit) expense

 

(8,054

)

 

(551

)

 

(3,040

)

 

9,030

 

Net income

 

$

10,450

 

 

$

13,293

 

 

$

31,667

 

 

$

40,518

 

Net income per common share:

 

 

 

 

 

 

 

 

Basic

 

$

0.27

 

 

$

0.35

 

 

$

0.81

 

 

$

1.06

 

Diluted

 

$

0.26

 

 

$

0.34

 

 

$

0.79

 

 

$

1.03

 

Weighted-average common shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

39,246

 

 

38,465

 

 

38,988

 

 

38,233

 

Diluted

 

40,133

 

 

39,492

 

 

40,113

 

 

39,501

 

Lantheus Holdings, Inc.
Consolidated Segment Revenues Analysis
(in thousands – unaudited)

 

 

Three Months Ended
December 31,

 

Year Ended
December 31,

 

2019

2018

% Change

 

2019

2018

% Change

United States

 

 

 

 

 

 

 

 

 

 

 

DEFINITY

$

57,678

 

 

$

47,359

 

 

21.8

%

 

$

211,777

 

 

$

178,440

 

 

18.7

%

TechneLite

17,330

 

 

17,262

 

 

0.4

%

 

72,534

 

 

74,042

 

 

(2.0

)%

Other nuclear

8,225

 

 

11,651

 

 

(29.4

)%

 

36,231

 

 

48,935

 

 

(26.0

)%

Rebates and allowances

(4,518

)

 

(3,521

)

 

28.3

%

 

(16,553

)

 

(12,837

)

 

28.9

%

Total United States

78,715

 

 

72,751

 

 

8.2

%

 

303,989

 

 

288,580

 

 

5.3

%

International

 

 

 

 

 

 

 

 

 

 

 

DEFINITY

1,695

 

 

1,206

 

 

40.5

%

 

5,731

 

 

4,633

 

 

23.7

%

TechneLite

3,264

 

 

6,105

 

 

(46.5

)%

 

14,058

 

 

24,816

 

 

(43.4

)%

Other nuclear

5,673

 

 

6,211

 

 

(8.7

)%

 

23,574

 

 

25,349

 

 

(7.0

)%

Rebates and allowances

(1

)

 

(2

)

 

(50.0

)%

 

(15

)

 

(4

)

 

275.0

%

Total International

10,631

 

 

13,520

 

 

(21.4

)%

 

43,348

 

 

54,794

 

 

(20.9

)%

Worldwide

 

 

 

 

 

 

 

 

 

 

 

DEFINITY

59,373

 

 

48,565

 

 

22.3

%

 

217,508

 

 

183,073

 

 

18.8

%

TechneLite

20,594

 

 

23,367

 

 

(11.9

)%

 

86,592

 

 

98,858

 

 

(12.4

)%

Other nuclear

13,898

 

 

17,862

 

 

(22.2

)%

 

59,805

 

 

74,284

 

 

(19.5

)%

Rebates and allowances

(4,519

)

 

(3,523

)

 

28.3

%

 

(16,568

)

 

(12,841

)

 

29.0

%

Total Revenues

$

89,346

 

 

$

86,271

 

 

3.6

%

 

$

347,337

 

 

$

343,374

 

 

1.2

%

Lantheus Holdings, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(in thousands, except per share data – unaudited)

 

 

 

Three Months Ended
December 31,

 

Year Ended
December 31,

 

 

2019

 

2018

 

2019

 

2018

Net income

 

$

10,450

 

 

$

13,293

 

 

$

31,667

 

 

$

40,518

 

Stock and incentive plan compensation

 

2,991

 

 

2,481

 

 

12,571

 

 

9,496

 

Amortization of acquired intangible assets

 

451

 

 

581

 

 

1,804

 

 

2,648

 

Campus consolidation costs

 

—

 

 

3

 

 

—

 

 

1,157

 

Extinguishment of debt

 

—

 

 

—

 

 

3,196

 

 

—

 

Arbitration award

 

(3,453

)

 

—

 

 

(3,453

)

 

—

 

Strategic collaboration and license costs

 

—

 

 

—

 

 

300

 

 

—

 

Integration costs

 

1,488

 

 

 

 

1,488

 

 

 

Acquisition-related costs

 

2,834

 

 

—

 

 

8,010

 

 

—

 

Income tax benefit for release of valuation allowances

 

—

 

 

(3,969

)

 

—

 

 

(3,969

)

Income tax effect of non-GAAP adjustments(a)

 

(1,134

)

 

(1,123

)

 

(8,583

)

 

(5,126

)

Adjusted net income

 

$

13,627

 

 

$

11,266

 

 

$

47,000

 

 

$

44,724

 

Adjusted net income, as a percentage of revenues

 

15.3

%

 

13.1

%

 

13.5

%

 

13.0

%

 

 

Three Months Ended
December 31,

 

Year Ended
December 31,

 

 

2019

 

2018

 

2019

 

2018

Net income per share - diluted

 

$

0.26

 

 

$

0.34

 

 

$

0.79

 

 

$

1.03

 

Stock and incentive plan compensation

 

0.07

 

 

0.06

 

 

0.31

 

 

0.24

 

Amortization of acquired intangible assets

 

0.01

 

 

0.02

 

 

0.04

 

 

0.06

 

Campus consolidation costs

 

—

 

 

—

 

 

—

 

 

0.03

 

Extinguishment of debt

 

—

 

 

—

 

 

0.08

 

 

—

 

Arbitration award

 

(0.09

)

 

—

 

 

(0.09

)

 

 

Strategic collaboration and license costs

 

—

 

 

—

 

 

0.01

 

 

—

 

Integration costs

 

0.04

 

 

—

 

 

0.04

 

 

—

 

Acquisition-related costs

 

0.07

 

 

(0.10

)

 

0.20

 

 

—

 

Income tax benefit for release of valuation allowances

 

—

 

 

—

 

 

—

 

 

(0.10

)

Income tax effect of non-GAAP adjustments(a)

 

(0.02

)

 

(0.03

)

 

(0.21

)

 

(0.13

)

Adjusted net income per share - diluted

 

$

0.34

 

 

$

0.29

 

 

$

1.17

 

 

$

1.13

 

Weighted-average common shares outstanding - diluted

 

40,133

 

 

39,492

 

 

40,113

 

 

39,501

 

  1. The income tax effect of the adjustments between GAAP net income and non-GAAP adjusted net income takes into account the tax treatment and related tax rate that apply to each adjustment in the applicable tax jurisdiction.

Lantheus Holdings, Inc.
Reconciliation of Free Cash Flow
(in thousands – unaudited)

 

 

Three Months Ended
December 31,

 

Year Ended
December 31,

 

2019

 

2018

 

2019

 

2018

Net cash provided by operating activities

$

22,421

 

 

$

17,306

 

 

$

80,384

 

 

$

61,193

 

Capital expenditures

(4,741

)

 

(7,366

)

 

(22,061

)

 

(20,132

)

Free cash flow

$

17,680

 

 

$

9,940

 

 

$

58,323

 

 

$

41,061

 

Lantheus Holdings, Inc.
Condensed Consolidated Balance Sheets
(in thousands – unaudited)

 

 

December 31,
2019

 

December 31,
2018

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

92,919

 

 

$

113,401

 

Accounts receivable, net

43,529

 

 

43,753

 

Inventory

29,180

 

 

33,019

 

Other current assets

7,283

 

 

5,242

 

Total current assets

172,911

 

 

195,415

 

Property, plant and equipment, net

116,497

 

 

107,888

 

Intangibles, net

7,336

 

 

9,133

 

Goodwill

15,714

 

 

15,714

 

Deferred tax assets, net

71,834

 

 

81,449

 

Other long-term assets

21,627

 

 

30,232

 

Total assets

$

405,919

 

 

$

439,831

 

Liabilities and stockholders’ equity

 

 

 

Current liabilities

 

 

 

Current portion of long-term debt and other borrowings

$

10,143

 

 

$

2,750

 

Accounts payable

18,608

 

 

17,955

 

Accrued expenses and other liabilities

37,360

 

 

32,050

 

Total current liabilities

66,111

 

 

52,755

 

Asset retirement obligations

12,883

 

 

11,572

 

Long-term debt, net and other borrowings

183,927

 

 

263,709

 

Other long-term liabilities

28,397

 

 

40,793

 

Total liabilities

291,318

 

 

368,829

 

Total stockholders’ equity

114,601

 

 

71,002

 

Total liabilities and stockholders’ equity

$

405,919

 

 

$

439,831

 

 

Mark Kinarney
Director, Investor Relations
978-671-8842
ir@lantheus.com

Source: Lantheus Holdings, Inc.

Mark Kinarney
Director, Investor Relations
978-671-8842
ir@lantheus.com